tv [untitled] June 2, 2013 10:30pm-11:01pm PDT
table 4 of our report where it shows the increase going from 9.95 million to [speaker not understood], increase. and as ms. forbes stated, we believe that these requested increased expenditures are reasonable. we recommend that you approve the proposed resolution. >> thank you. mr. rose, as we discussed before, these were anticipated adjustments that were anticipated long time ago in the initial contract was signed? >> correct. >> thanks. colleagues, any questions for mr. rose? or staff? okay, we'll open it up to public comment. anybody wish to publicly comment on item number 4, please step forward. seeing none, public comment is closed. [gavel] >> colleagues, can we have a motion to move item 4 forward to the full board? we can do that without opposition. [gavel] >> mr. clerk, can you please call items number 5 and 6 together? >> is that for the june 4th meeting or june 18th? >> june 4th meeting. >> thank you.
item 5, resolution authorizing the issuance of not to exceed $25,300,000 aggregate principal amount of port revenue bonds for the purpose of financing capital improvements related to phase ii of the james r. herman cruise terminal project located at pier 27 and for improvements to northern waterfront historic piers; authorizing the port to cause the preparation of such documents necessary in connection with the issuance of said port revenue bonds; stating the official intent of the port to reimburse itself with tax-exempt bonds for expenditures made or to be made for the acquisition, construction, or improvement of the project; authorizing the port to borrow funds on an interim basis from the city's commercial paper program; and related matters. item number 6, ordinance appropriating $34,722,930 consisting of $25,265,500 of 2013 port revenue bond series a and b proceeds, $849,680 of interest earnings, $6,445,220 from 2010 revenue bond funded projects, $1,689,074 from 2012 certificates of participation series b funded projects and $473,456 from port capital funded projects to the port commission in fy 2012 - 2013 for the development of the cruise terminal project at pier 27 and the northern waterfront historic pier structures repair project. >> thank you. ms. forbes, welcome back. >> thank you. good afternoon again. the port has completed phase 1 of the cruise ship terminal, the james r. herman cruise terminal at pier 27 and is putting in place financing necessary to complete phase 2 of the project. first, the port looked to all other available sources before proposing new revenue, port revenue bonds and the port is
also requesting a reallocation of existing taxable debt to taxable projects in the northern waterfront which i will describe. items 5 and 6 allow us to authorize newport revenue bonds and allow us to on an interim basis utilize the city's commercial paper program. and item 6 is an appropriation ordinance of 34.7 million of which 25.3 is new rev nigh bond funds is 9.4 is reallocation. these sources are intended for two purposes. face 2 of the cruise terminal and northern waterfront historic pier projects. the reason for bringing these items now is in advance of having the pos and sale documents is to keep the cruise terminal schedule so we can award big contracts. so, that is the purpose. we'll be back in the fall with the request for sale.
just a bit about the facility. as you know, it was completed. phase 1 was completed february 28 of this year. the event authority is using the facility now as the america's cup village and will do so until october 1st. phase 2 of the project consists of building out all the maritime improvement, the park, northeast wharf tip, ballards provisioning et cetera to make it a functioning cruise ship terminal which is its primary purpose and then we'll begin to see about 200,000 visitors to san francisco through our cruise lines. it's a 9,000 square foot building. it's got a large gta, 2-1/2 acre park plaza and a tip at the end. so, it's quite a large facility. we already talked about the design services. in terms of the budget for the project, it was phase 1 cost $66.31 million.
total project is estimated to cost 112 million, but we added a 2 million dollar contingency to manage project risk in the budget analyst report. this slide shows phase 1 ask title 1 and 2 project costs [speaker not understood]. the budget analyst report notes that we have all the appropriations for the project, but 23.78 million. the supplemental before you would make that final appropriation. other sources for the project are varied and it's been great for the port to have support in building this project. we have 58% port sources, 16% a passenger facility charge. we've done some work on how much we can charge, reasonably charge our passengers to help us repay the cost of this facility. with the help of san francisco voters in the last clean and save parks bond, 15% of the project supports those park and open spaces.
we have a city contribution of 5% and a fema grant paying for 6% of the project. here is the sources and uses which is also outlined in your budget analyst report. 34.7 million sources for 23.7 78 for the cruise ship terminal, 7 million for the northern waterfront historic pier project. the rest were debt issuance and authorization costs. the reallocation is coming from previously authorized bonds, but we didn't use either because the projects were scoped down or we had cost savings. mostly from using our own crews to perform work. so, we're very pleased to be able to reallocate existing taxable debt to the northern waterfront pier project. this project is really to help us release the former america's cup site and look to improving and reopening pier 31 which is currently closed to use.
these were also private leasing activities. we're looking to [speaker not understood] in the near term. again, support private leasing activities, ensure revenues that are assumed in our five-year financial plan to meet our contributions to capital. and to rehabilitate facilities and generate new revenue. pier 31 is a very promising example for us. as i said, it's closed to use. we've done a lot of investigation and learned we can repair the facility and get it open without triggering a very expensive substructure and seismic work. we're projecting costs of 5.2 million and we're saying that the project with leasing for light industrial will pay back its debt service in year 11, debt service and coverage and start to generate positive cash flow to the port. so, we're very excited about the opportunity to save this historic structure. now to the port's ability to look forward as a proposal. right now we have 75.1 1 million in obligations and
that's including the soon to be sold cops for 2013 with the proposal we'll have a debt portfolio of about $100 million and 99.4. ~ the city's -- the poc we're proposing will repay approximately 76% of the debt service. so, prior -- in april of 2012 before we started seeing a lot of economic improvement, the port's net revenues were estimated at $17.8 million for bonding capacity of 42.6 million. the recent five-year financial forecast which is showing improvement in the economy and some strength we've had in our operating budget show net revenues of 21.2. so, our bonding capacity is growing. after the proposal, the port's contribution not repaid by the pfc will bring down our capacity to 47.6 million which is still healthy for us and will maintain coverage ratios way in excess of our covenant
requirement and in excess of our port policy. so we're looking at 2.9 for coverage. so, we're feeling very comfortable that we can afford this proposal. and this estimate doesn't include new revenue from pier 31. so, with that, we'll answer any questions you have. >> okay. thank you, ms. forbes. colleagues, any questions on items 5 and 6? okay, seeing none, can we go to our budget analyst report, mr. rose. >> yes, mr. chairman, members of the committee. on page 13 in table 2 of our report, we have examined the requested $34.7 million and find those expenditures to be reasonable. on page 16 of our report, we note that the estimated debt service on the proposed bonds is $1.46 million. that's annual debt service and over the 30-year term of the bonds, the estimated principal
is 24.3 million. interest is 18.9 million, nearly 19 million for total debt service of 43 million 2 66,85 4. we recommend that you approve this legislation. >> okay, thank you very much, mr. rose. colleagues, any questions? okay, seeing none, we'll open up to public comment. anybody wish to publicly comment on items 5 or 6? okay, seeing none, public comment is closed. [gavel] >> colleagues, can i have a motion to move these items forward to the full board? so moved by supervisor avalos. we can do so without opposition. [gavel] >> mr. clerk, can you please call item number 7. >> item number 7, resolution authorizing the port to accept and expend a grant in the amount of $250,000 from the california cultural and historical endowment under the california clean water, clean air, safe neighborhood parks, and coastal protection act of 2002 for the pier 70 union iron works machine shop stabilization project for the period of june 15, 2013, through december 31, 2014. ~ stabilization project.
>> okay, thank you very much. >> [inaudible] the budget manager of the port. again, megan wallace, budget manager of the port. this final item before you is to -- is a resolution to accept and expend a grant of $250,000 from the california cultural heritage endowment. and [speaker not understood] supplement port funds that are necessary to stabilize the union iron work, machine works building at pier 70. and as you may be familiar with pier 70 as well as this building, it's a very historically significant area and, therefore, definitely worthy of the grant funds. as the port is currently preparing to go forward to bid out this work, and we're just seeking your approval of the grant to accept and expend the grant. and i the project manager kathleen [speaker not understood] are both here to answer any questions. >> okay, thank you very much. colleagues, any questions? okay, seeing none, much
appreciated. we do not have a budget analyst report for this item so we'll open up to public comment. if anybody wish toes comment on item number 7? okay, seeing none, public comment is closed. [gavel] >> colleagues, can i have a motion to move item 7 to the full board? so moved, we can do so without opposition. [gavel] >> mr. clerk, do we have any other items? >> that completes the agenda for today. >> okay, we are adjourned. [gavel] [adjourned] good afternoon and thank you for coming. i'm delighted to announce that our first
effort is unleashed upon the world. [ applause ] . it's only been two-and-a-half years since the moment of conception of this idea. it's an amazing tribute to our community. it reached three levels of impossibility, of getting a permit and designing it and putting it on this structure and the impossibility of getting it funded. it really is a tribute to so many and a lot of faces that i'm looking at this room tonight. it comes down to as always people. i'm going through a few moments here to give a real thanks to people who made this night and the next two years possible. i'm going to list a couple of
company names, but i want to think of them as members of our community that made this project possible. that included, bloomberg, guchie, it includes the partners, magazine, california home and design, magazine, aluminum illuminary sponsors and the folks tonight. and, you know that first level of impossibility. i'm going to list some agency names. it comes down to a lot of people in this room to make it possible. my first phone call in this project was to cal
trans. in cal trans working together with the bay area with the mayor's office here in the county of san francisco and coast guard, official wild life, all of these came together to find a way when typically the system is designed to say no, people found a way to say yes to this project. the arts commission, this collusion support from the san franciscmuseum of modern art. i apologize for the folks i will be missing because this is a cast of a thousand that made this happen. we certainly love our lawyers in this process. morrison who helped it become a very established and
professional way in getting the contract involved in getting this project to an amazing legal footing. the technology network in san jose who made this a crucial project. i want to call out a thanks to or tactical team. we know how to make it small, not over 150 feet in the air. we have a studio, zone engineering and i have to say thanks to hmr who has been a rock star and directly one of the reasons this is happening. an extremely talented project. thank you all. i also want to just take a moment to really acknowledge that while leo and i have done a lot of things m in this
world, we would not be able to do it alone. there is only one person responsible for this project and that is executive director of the arts. luminarias. i can go on and on. i think i will throughout the night. do know that she's a special person and this entire community owes her a debt of gratitude. i want to thank leo and his family for bringing the level of artistic integrity for this work that somehow slipped through the progress of a work of contemporary art parallel in
art history. it has everything to do with leo and our interpretations with our discussion and that one minute that transformed how people will be receiving this project and how i can make this happen and lieutenant governor will join us at the ceremony at the bay light.org. i really want to thank our mayor who is a visionary in his own right and common good and who i had the pleasure of working with other projects and he's making this city better every single day. people should know that mayor embraced this team, this project ma way that had nothing to do with really -- even, it
was a matter of passion, a personal desire to see the work of art radiant and shine in our community it was an amazing gift. mayor lee, we owe you a great debt of gratitude. thank you so much. [ applause ] >> thank you. welcome everybody to the building in san francisco. gosh, your vision, i have been living with this vision for almost two years now ever since our city engineer said, come with me to this event and you are going to be surprised how we can turn infrastructure to a piece of art. i have worked with so many
projects with roads and buildings that we oftentimes cannot lift this heavy piece of metal or holes in the ground an construction and not be able to see the work of art that contributes to this city and future. amy, thank you for your incredible leadership on this. i met you first at this event here but was immediately sold on the possibility that we can unleash art in the most creative way. this is in fact a beacon for our arts community, for a world class city and it has the ability to attract some $50 million of contributions to our economic vitality a huge base of fans that will visit our city. there is going to be
150 million visitors, i think it's going to be $97 million contribution to our committee already scaled by our travel association. so part of it is economics, but i actual, without even having those numbers in front of me knew that this was going to excite us. i actually know that when we unveil this tonight, the feeling that i'm going to be having, is we just won another world series because it's going to bring that kind of excitement into city. and to have this timed in a way in which we have just finished the 75th anniversary of the celebration of the bay bridge, we have opened the auditorium and on our bay for the first time we have just finished the
world series and the 55 sealing on our bay is a celebration for san francisco and this incredible rebounds that this city is experiencing can really only be complimented by the arts, because allows the arts to celebrate all the other things that we are trying to do economically to be covered, i think is an incredible cap on our future on what we can experience and exemplify to the rest of the world. this leaves me to an appreciation to the artist that he has not only visualized what 25,000 led lights can do but discovered a fashion in which will not see the same pattern at any time experience. this is kind that have innovation that we are experiencing in san francisco that creativeness, that we've
always wanted to have from our arts community to us with all the other things that we are doing in struggling everyday and sometimes there are good stories but art has always been an inspiration to me. you can imagine anything you want in these lights. the artist will say that leo has always said it and documented in so many other interviews to give yourself a chance to work with these 25,000 light is. to me it's the mustache. it will be for every child in us, the ability to celebrate, to see what's good and what we have done here, but i think it will be the beacon for world class to happen here in san francisco. i look
forward to -- we talked about this being a 2-year commitment. but we all know with the success this has, we are already and i will predict that people, including myself will want this to be on going certainly during my lifetime. [ applause ] >> so i have every expectation we'll about be right there hand in hand celebrating with you to create even more art in the city. by the way, it's budget time, so tom in the art commission, you have done very well with the opening of this timing with everybody else that we have the proper level of art to be creative, to bless us with all the things that are so positive and to exemplify the arts community for what it's done. with that, i would like to introduce our artist leo
villa real. >> thank you so much. i'm beyond thrilled to be here today. this has been an incredible 2-and-a-half years from the initial idea when ben davis asked me to consider the bridge and how it can be turned into a canvas and having thought about it and created an assimilation on the computer, animation that so many people saw and were inspired to get behind and enabled to happen. so many people to thank, but certainly folks at cal trans and mayor's office, governors office. there were so many hoops we had to jump through. getting the permit was one of
the miracles. i thank you for believing in public art and helping us get this done. amy has been amazing, our executive art director. [ applause ] amy was able to shepherd this impossible project through all the intricacies, i'm in incredibly grateful for her help, grateful for his efforts in another monumental task. he's raised $6 million of our $8 million. this project is an incredible gift by our pat patrons through the city. this is an incredible piece. you
don't have to buy a ticket. it's there and available. a very universal quality, it has some response to it. it's operating on a very primal level. i think we the technical team that put this piece up has been remarkable. zad and zoon has been a lifesaver. incredible individual who has never said no to me. everything is always been possible and bringing the team together to actually install this work. to make a photo shop simulation and 3d animation project. it
was in incredibly inspiring. i went out there on a cloudy day and it was incredible magic that was happening. i knew this was going to be fine if i can channel the interaction of all these systems into my work. so i'm very grateful for everyone who helps install this piece. we had lane closures. everything happened from 5 a.m. there were hundreds of thousands of cars and the contractors installing this 550 feet over the water. incredibly challenging work but here we are. i would like to thank my team and studio, everyone helping, our lead programmer,
transit for helping with all our networking, there is a lot of behind-the-scenes of help that nobody will know about, we have computers, wireless connections, i want to thank timothy child's who helps us invent this custom clip which we used to hang these lights on the bridge. there was a lot of behind-the-scenes that's it's taken to bring this work to a reality. i guess our patrons are also, that's a whole other -- unleashing generosity in the way that we have just really bologna way blown -- away. incredible innovation at work and thankful to phillips for
their equipment and standing behind they are technology and helping us achieve what we have done i guess we are here and ready to punch the button on the computer. we are using a laptop tonight and it's going to go on at 9:00. i'm just incredibly grateful and keep pinching myself that this is happening. i'm incredibly overwhelmed that this is happening and i'm eager to share this work with all of you. thank you.out to bring tha
someone special. welcome to corona height located in the height of the cast strow district the eye kong bay bridge and on towards the east bay. cone oi shakes park is one the city's best kept secrets on lake twin peaks it's hardly crowded on a day any day you will run into a new lolls and hop on a bus to get there without any parking worries and lolls bring